Rosneft’s announcement of its contract with a partner in India to significantly increase Russian oil deliveries comes at a time when Russia is looking to diversify its oil and gas exports and find new markets to offset losses in Europe due to Western sanctions. The signing of the agreement took place during the visit of the state-owned company’s chairman, Igor Séchin, to India and is expected to help consolidate Russia’s position as one of Asia’s leading energy suppliers.
The Russian oil giant did not specify the amount of the contract or the volumes agreed, but the announcement comes after Russia announced a 22-fold increase in its oil exports to India by 2022. India and China are the main countries with which Russia hopes to make up for lost contracts in Europe. These two countries are also major energy consumers, making the diversification of oil and gas exports to these markets particularly important for Russia.
In addition, the agreement also provides for the possibility of making payments in national currencies, reflecting Russia’s strategy to reduce its dependence on the US dollar as an international transaction currency. Signing trade agreements in domestic currencies can also help reduce transaction costs and avoid the risks associated with exchange rate fluctuations.
Although Russia has been diversifying its energy exports for some time, the imposition of economic sanctions and hydrocarbon embargoes by Western countries has accelerated this process. While these measures have negatively affected the Russian economy, they have also led to the search for new opportunities in other markets, especially in Asia. With the signing of this agreement, Rosneft seeks to take advantage of these opportunities and consolidate its position as one of the main energy suppliers in the region.